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WEDNESDAY, OCTOBER 5, 1983
+BUT BECAUSE OF THE IMMEDIATE EFFECT ON SENSITIVE FINANCIAL MARKETS OF EVERYTHING WE MAY SAY AND DO; BECAUSE WE MUST NOT MISLEAD AS TO WHAT IS WITHIN THE POWER OF GOVERNMENT TO ACHIEVE AND WHAT IS NOT; AND BECAUSE WE MUST BE AS SURE AS WE REASONABLY CAN OF THE CONSEQUENCES OF ANY ACTION WE MIGHT TAKE, WE MUST PROCEED WITH CARE AND CAUTION, SIR EDWARD STRESSED.
HE REITERATED THAT HE DID NOT BELIEVE THAT THE ERRATIC FLUCTUATIONS OF RECENT WEEKS REFLECTED THE ECONOMIC AND POLITICAL REALITIES OF THE SITUATION, NOR THE STRENGTHS OF HONG KONG'S ECONOMY AND SOCIETY.
ON PUBLIC FINANCES, SIR EDWARD NOTED THAT REVENUE COLLECTIONS SO FAR THIS YEAR HAD BEEN LOWER THAN EXPECTED, DUE MAINLY TO THE DEPRESSED STATE OF THE PROPERTY MARKET AND THE RESULTING SHORTFALL IN THE YIELDS FROM LAND SALES.
BUT HE ADDED THAT THE HIGHER GROWTH RATE OF THE ECONOMY NOW EXPECTED SHOULD BRING ABOUT SOME IMPROVEMENT IN THE SITUATION TOWARDS THE END OF THIS FINANCIAL YEAR.
+FORTUNATELY, TOTAL EXPENDITURE IS ALSO LOWER THAN ESTIMATED, BECAUSE OF A CONTINUING REDUCTION IN TENDER PRICES FOR LARGE CAPITAL PROJECTS, REDUCED EXPENDITURE ON LAND RESUMPTION, AND TIGHT CONTROL OF RECURRENT EXPENDITURE.
+AS A RESULT, IT SEEMS LIKELY THAT THE DEFICIT ON GENERAL REVENUE ACCOUNT WILL BE IN THE REGION OF THE BUDGETED $3.2 BILLION, SIR EDWARD REPORTED.
THE RISE IN THE FORECAST RATE OF GROWTH OF THE GROSS DOMESTIC PRODUCT, TOGETHER WITH THE EXPECTED REDUCTION IN THE GROWTH OF PUBLIC EXPENDITURE, MEANT THAT THE PUBLIC SECTOR WOULD CONSTITUTE SLIGHTLY LESS THAN 23 PER CENT OF THE GDP THIS YEAR, COMPARED WITH THE ORIGINAL BUDGET ESTIMATE OF 24.1 PER CENT, HE SAID, ADDING THAT THIS WAS AN ENCOURAGING TREND.
+DESPITE ALL THIS, A DEFICIT STILL EXISTS A RETURN TO A BALANCED BUDGET WILL DÉPEND UPON THE MAINTENANCE OF STRICT CONTROL OVER THE LEVEL AND MANNER OF EXPENDITURE FROM PUBLIC FUNDS.
+WE INTEND THIS YEAR TO CONTAIN EXPENDITURE ON GENERAL REVENUE ACCOUNT WITHIN THE BUDGETED LIMIT OF $35.5 BILLION PRESENT INDICATIONS ARE THAT THIS WILL BE ACHIEVED, SIR EDWARD SAID.
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